2 0 C a n adi a n M inin g J o ur n a l J un eJ u l y 2014 w w w c a n adi a nminin gj o ur n a l co m THE ROLE OF TECHNOLOGY T o a id in t h e e a r l y di s co v er ies m o der n a irb o r n e a n d g r o un d g e o p h ysic a l t e c h n o log ies w er e u s e d a lo n g w i t h g e o c h emi c a l t es t in g t o exp lo r e r o c k p ac ka g es t h a t a r e o f t en co v er e d b y a v en e er o f P a le o zo ic c a rb o n a t es s a n d s t o n es a n d g l aci a l t i l l A l t h o u g h m o s t o f t h e a r e a o f t h e g r e en s t o n e b e l t i s exp os e d t h e a r e a o n t h e s o u t h side i s co m p let e l y b ur ie d b en e a t h m uc h y o un g er s e dim en t a r y r o c ks w hic h a r e co m p let e l y unr e l a t e d t o t h e r o c ks h os t in g t h e o r e b o dies Th u s n e w t e c h n o log y f o r R e e d C o p p er wa s u s e d in t h e f o r m o f h e lico p t er t im e do m a in e le c t r o m a g n et ics TEM t o s e e t hr o ug h t h e y o un g er r o c ks a n d exp lo r e t h e Flin Flo n g r e en s t o n e r o c ks b en e a t h G e o t e c h L t d s V er s a t i le T im e D o m a in E le c t r o m a g n et ic V TEM sys t em wa s s e le c t e d f o r t hi s cr uci a l p a r t o f t h e j o b V TEM i s a b le t o co v er l a r g e a m o un ts o f g r o un d q uic k l y a n d in m os t c a s es t h e e le c t r o m a g n et ic EM a n o m a lies iden t if ie d b y t h e sys t em m a y b e dr i l le d imm e di a t e l y I n t h e p a s t R o o zen d aa l s a ys EM a n o m a lies det e c t e d f r o m t h e a ir n e e de d t o b e p r e ci s e l y lo c a t e d o n t h e g r o un d b ef o r e b ein g dr i l le d Thi s r e q uir e d exp en si v e a n d t im eco n s umin g s ur face g e o p h ysic a l s ur v e ys VMS wa s o n e o f t h e f ir s t co m p a nies in t h e Flin Flo n b e l t t o dr i l l dir e c t l y f r o m a irb o r n e d a t a w hic h a l lo w e d i t t o f l y dr i l l a n d di s co v er a l l in t h e s a m e y e a r Th e u s e o f a irb o r n e e le c t r o m a g n et ic a n d m a g n et ic g e o p h ysic a l s ur v e ys co u p le d w i t h M o b i le M et a l I o n s s o i l g e o c h emi s t r y h a s p r o v en t o b e a ra p id a n d cos tef f e c t i v e m et h o d o f a s s es sin g VMS p r o p er t ies in t h e b e l t Th e def ini t io n a n d dr i l l t es t in g o f a co in ciden t EMm a g n et ic a n o m a l y o n t h e R e e d p r o p er t y le d t o t h e di s co v er y o f t h e R e e d C o p p er dep osi t s a ys R o o zen d aa l LOCAL IMP ACT Th e di s co v er y o f R e e d C o p p er wa s p osi t i v e n e ws f o r t h e lo c a l co mm uni t ies b e c a u s e t h e l a s t r em a inin g min e a t n e a rb y S n o w L a k e a n d a l a r g e min e in Flin Flo n w er e de c linin g in p r o d uc t io n in 2007 t h e s a m e t im e t h e R e e d C o p p er di s co v er y wa s m ade Th e t w o min es w er e en o r m o u s co n t r i b u t o r s t o t h e M a ni t o b a n e co n o m y s o R e e d C o p p er wa s a w e lco m e a nn o un ce m en t a n d w i l l h e l p co n t r i b u t e t o t h e f u t ur e o f N o r t h er n M a ni t o b a THE FUTURE Th e lif e o f t h e min e i s p r e dic t e d t o p e a k a t a p p r o xim a t e l y six y e a r s h o w e v er un der g r o un d exp lo ra t io n w i l l co n t in ue w i t h t h e p o t en t i a l t o add n e w t o nn es t hr o ug h o u t t h e min e s lif e T yp ic a l l y t h e dep osi ts o f t hi s b e l t c a n g r o w in size a s a r es u l t o f exp lo ra t io n a v era g in g t w o t o t hr e e t im es t h eir o r ig in a l t o nn a g e A s a r es u l t t h e size o f t hi s dep os i t m a y g r o w a s w e l l t h er e b y ext en din g t h e lif e o f min e CMJ The 72 million ca pex project is a joint ven ture between Hudbay Minerals 70 opera tor and VMS V entures 30 T he Reed mine will be a ramp access mine to three steeply dipping ore zones with a reserve of 216 million tonnes at 383 copper Averaging 60 of full production tonnage 1300 tonnes per day having operated at 792 tonnes per day in the frst quarter of 2014 During the frst quarter Reed mined 71236 tonnes of ore at a copper grade of 192 and a zinc grade of 214 from a combination of ore development and longhole stope mining T he project has invested 66 million to the end of Q1 2014 and approximately 4 million of project capital will be spent as sustaining capital over the life of the mine Sale of copper and zinc concentrates will start to pay back the Company s project loan and adv ance VMS tow ards cash fow During the month of March development adv anced 288 metres or 93 metres per day for a total of 3215 metres project to date 27407 tonnes of ore were mined in March Information for the Special Report pr ovided by John Roozendaal Pr esident and Dir ector VMS V entur es SOME INTERESTING F ACTS AND FIGURES M inin g in t h e P ra ir ies